Sustainable Urbanization Trust Fund

The Sustainable Urbanization Trust Fund (IDSUN) managed by The World Bank supports the Government of Indonesia and selected Indonesian cities to address the challenges of sustainable urbanization. It entails technical assistance and capacity-building to meet pressing needs in urban infrastructure financing, urban management and strategic project preparation.

Country/region Topic Period Budget
Urban infrastructure and utilities
11.05.2016 - 31.12.2019
CHF 12'825'000
Background Indonesia is comparatively benefitting less from the potential positive returns to urbanization in terms of growth of Gross Domestic Product and poverty reduction. One of the reasons for this is to be found in the infrastructure backlog which the country has accumulated. Furthermore, Indonesia’s decentralization process since 2001 has not been accompanied by the expected improvement in service quality. Local governments have lacked the capacity to plan, prepare and finance strategic infrastructure investments and keep pace with the high demand for urban services.
Objectives Enable the Government and Indonesian cities to meet pressing needs in urban infrastructure financing, urban management and strategic project preparation through technical assistance and capacity-building activities.
Medium-term outcomes Enhanced access for local governments to national debt financing for large and economically viable multi-year infrastructure investments.Improved awareness and capacity on geospatial data management and GIS-based spatial planning and analytics to inform policies and investments.Enhanced technical capacity of city governments to engage in long term integrated strategic planning.Improved financial management in participating cities and credit-worthiness to establish options for accessing alternative sources of local funding.Improved conditions for urban transport systems: a national framework for urban transport defines modalities of urban transport investments and selected municipalities integrate major transport projects into a wider transit oriented development plan.Increased awareness and capacity at national and city-level to develop planning, investment, and recovery tools to reduce flood and disaster risk and increase urban resilience.

Expected results:   Design and refinement of operational procedures of a Regional Infrastructure Development Fund.City-level assistance on spatial analytics, strategic planning and creditworthiness.Development of rules for channeling financing to the city-level for the improvement of local urban transport systems.Development of priority urban resilience investments in selected cities.Production of knowledge materials, exchange and learning activities.

Directorate/federal office responsible SECO
Credit area Development cooperation
Project partners Contract partner
  • World Bank - International Bank for Reconstruction and Development

Budget Current phase Swiss budget CHF   12'825'000 Swiss disbursement to date CHF   0 Budget inclusive project partner CHF   21'900'000
Project phases Phase 10 11.05.2016 - 31.12.2019   (Current phase)